Loading
This thread is archived and the information may not be up-to-date. You can't reply to this thread.
Juj(Newbie)Newbie
28 Sept 2024

I own an investment property which has been rented out for about 15 years. Prior to this, I lived in it for about 5 years after I bought it new. In November of the last financial year, I replaced the carpet (so 20-year old carpet). I understand that this new carpet will be included in my tax return as a capital works deduction? Not as a 'repair'? My question is, how do I calculate the amount that I enter for my return? Say the total cost of the carpet and its installation was $3000, for example.

346 views
3 replies
346 views
3 replies

Most helpful response

Most helpful reply

Bruce4Tax(Taxicorn)Taxicorn
29 Sept 2024

Carpet is a depn claim - as it was purchased after you vacated the property.


Does depreciation start in the next financial year?


No - starts from date installed ready for use. 2024 claim will be pro-rata from date installed.


And is the depreciation only on the carpet itself, and not the labour for laying the carpet? Is that recorded differently?


Depn is calculated on the installed cost.


All replies

Bruce4Tax(Taxicorn)Taxicorn
28 Sept 2024

I understand that this new carpet will be included in my tax return as a capital works deduction?


No - carpet is a depn claim


Liked by Juj
Juj(Newbie)Newbie
28 Sept 2024

Thanks.

And so how does that get included on my return? Does depreciation start in the next financial year? In other words, it does not get included in the 2023/24 tax return at all? I will claim depreciation from next year? (I think I read at about 25%?). And is the depreciation only on the carpet itself, and not the labour for laying the carpet? Is that recorded differently? (If at all)

Featured articles

Tax tips for managing your side hustle

22 Apr 2024 · 6 min read time

Tax on gifts and inheritances

15 Apr 2026 · 5 min read time

How much tax should I pay on a second job? Claiming the tax-free threshold

15 Apr 2026 · 4 min read time

Top liked users

  1. Bruce4Tax

    (Taxicorn)

    3260 likes

  2. Taxduck

    (Taxicorn)

    2069 likes

  3. PayrollDeanne

    (Taxicorn)

    816 likes

  4. YellowPotato

    (Taxicorn)

    529 likes

  5. knaresbro

    (Devotee)

    364 likes

Top contributors

  1. Bruce4Tax

    (Taxicorn)

    10399contributions

  2. Taxduck

    (Taxicorn)

    4762contributions

  3. PayrollDeanne

    (Taxicorn)

    2061contributions

  4. YellowPotato

    (Taxicorn)

    1352contributions

  5. YEP

    (Devotee)

    837contributions

Loading
Claiming new carpet in investment property | ATO Community